THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, February 9, 1996 TAG: 9602090506
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY VANEE VINES, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 89 lines
Many were still shaking their heads in disbelief over the School Board's 7-4 vote Wednesday to reinstate Mordecai L. Smith as the school district's budget development director.
But several board members contacted Thursday defended the decision, saying the judgment was based solely on the facts they were presented with in a closed session before Tuesday's board meeting.
Interim Superintendent James L. Pughsley, whose last day on the job is today, had urged the board to fire Smith at that session, board members said.
Pughsley recently resigned.
``I have no difficulty dismissing people for cause; when I make that kind of decision, I would like for cause to be demonstrated,'' said board member Elsie M. Barnes.
Asked whether Pughsley had presented an open-and-shut case to terminate Smith, Barnes said: ``No.''
Board member Ulysses V. Spiva said Smith made a convincing case that he simply followed orders, but did nothing inappropriate.
``(Smith) was simply able to show that, in fact, he was either following directions from (former Superintendent Sidney L.) Faucette or Dr. Pughsley; or that he, in fact, was carrying out the job he was authorized to do.''
Other board members privately said they were influenced by Smith's ability to rebut points Pughsley raised, making it hard for them to pin most of the troubles on him.
Few board members offered details, however.
The decision to reinstate Smith, who was placed on paid administrative leave nearly five months ago, startled many observers of the district's effort to grapple with the worst financial crisis in its history. An external audit of the district's 1994-95 budget uncovered a $12.1 million deficit.
The results of a special grand jury investigation into the district's finances are expected as early as this month. The board didn't discuss - or consider - delaying the decision on Smith's status until the results were made public, Barnes said.
Smith had assumed the duties of chief financial officer along with his responsibilities as budget development director for much of that year.
His annual salary was nearly $70,000 at the time he was placed on leave. Smith repeatedly has said he had done nothing wrong or out of line.
Board members, Donald F. Bennis, D. Linn Felt and Tim Jackson, declined to discuss their votes. Karen O. O'Brien, Ferdinand V. Tolentino, Joseph D. Taylor and Robert W. Hall could not be reached for comment on Thursday.
Susan L. Creamer, reached at home Thursday, said she did not have time to discuss the matter.
State law discourages board members from publicly disclosing the specifics of personnel matters discussed in private.
The move to reinstate Smith prompted Creamer to resign. Her seat is up for election in May. The two most recent board vacancies have been filled by the Circuit Court. But because Creamer was appointed by the City Council, the council will soon name her replacement.
Creamer, O'Brien, Taylor and board Chairwoman June T. Kernutt voted against Smith's reinstatement.
On Thursday, Kernutt said she hoped the move wouldn't further shake the City Council's faith in the board, which recently told the council it might need up to $4.4 million to close this fiscal year because of projected shortfalls in state and federal revenue. Still, the decision to reinstate Smith baffled some council members.
``I don't think it helped'' relations between the board and council, Kernutt said Thursday. In her view, the reasons to fire Smith were ``strong.''
The city has agreed to make up last year's $12.1 million deficit. MEMO: Staff writer Karen Weintraub contributed to this report.
ILLUSTRATION: Mordecai L. Smith
Joined the district in 1989
Employed as director of budget development; served as acting
chief financial officer for two months in 1993. Appointed acting CFO
again in August 1994. Unanimously appointed to the job by the board
in February 1995.
Placed on paid administrative leave in September 1995.
Reinstated on a probationary basis as director of budget development
Feb. 7.
Before joining the district, spent five years as senior budget
and management analyst for the city of Virginia Beach.
Bachelor's degree in accounting from Norfolk State; master's
degree in business administration from Old Dominion University.
KEYWORDS: VIRGINIA BEACH SCHOOL BOARD by CNB